(800) 949-0401 Apply NowConstruction projects have one consistent financial characteristic: costs don't arrive evenly. Materials are ordered in waves, subcontractors mobilize at different phases, and draws on permanent financing lag project milestones by weeks. A construction line of credit solves this timing mismatch by providing revolving capital you draw as costs arise and replenish as project payments arrive — keeping every job funded from groundbreaking to certificate of occupancy without cash flow interruption.
A construction line of credit is a revolving credit facility specifically designed for contractors, developers, and construction businesses to fund project costs between contract payments, permanent loan draws, or owner reimbursements. Unlike a construction loan (which funds a single project with scheduled draws), a construction line of credit is a standing facility you draw from and repay repeatedly across multiple projects simultaneously.
Construction lines are particularly valuable for general contractors managing concurrent projects, subcontractors with large material front-loads, developers bridging between construction loan draws, and specialty contractors with lumpy payment cycles. The facility provides pre-approved capital deployable across multiple jobs without separate loan applications for each project.
According to U.S. Census Bureau construction data, construction businesses consistently cite slow payment and front-loaded material costs as their top cash flow challenges — precisely what construction lines of credit address. Crestmont offers both construction lines and project-specific construction loans.
| Requirement | Typical Threshold | Notes |
|---|---|---|
| Contractor License | Active in operating state(s) | Required for most construction line facilities |
| Time in Business | 2+ years in construction | Track record of project completion important |
| Annual Revenue | $500,000+ | Project volume supports line sizing |
| Personal Credit Score | 620+ minimum | 640+ for best terms and highest limits |
| Project Backlog | Active or committed contracts | Demonstrates future repayment source |
| Bonding / Insurance | Required for most facilities | General liability and workers' comp minimum |
Crestmont Capital offers fast approvals and competitive rates. Apply in minutes.
Apply Now →| Cost Factor | Typical Range | What to Know |
|---|---|---|
| Interest Rate | Prime + 2%-5% (8-15% currently) | Tied to prime rate with fixed spread |
| Credit Limit | $100,000-$5,000,000 | Based on annual revenue and project volume |
| Draw Fee | 0%-1% per draw | Some facilities charge per-draw fees |
| Annual Fee | $500-$3,000 | Annual facility maintenance and review |
| Commitment Fee | 0.25%-0.5% on unused balance | Charged on some larger facilities |
| Prepayment / Termination | None on draws | Early facility termination may carry fee |
One revolving facility covers all your active projects simultaneously. Instead of arranging separate financing for each job, one construction line cycles across your entire project portfolio efficiently.
Draw exactly what you need for each phase, repay from owner payments, and redeploy for the next phase. You carry only the debt necessary, minimizing interest costs relative to project revenue.
With pre-approved capital, you can order materials and mobilize subcontractors the day a contract is signed — not after arranging financing. Mobilization speed is a competitive advantage in securing and retaining GC relationships.
Construction payment cycles are lumpy — large payments arrive weeks after work is completed. A construction line smooths this timing mismatch, ensuring consistent cash flow for payroll, materials, and overhead regardless of where each project sits in its payment cycle.
No obligation. No hard credit pull to check your options. Apply today with Crestmont Capital.
Check My Options →A GC manages five concurrent commercial build-outs totaling $8M in active contracts. Each project requires significant material front-loading 30-60 days before owner payment arrives. A $750,000 construction line cycles across all five projects — deploying capital as each needs materials and replenishing as each project's draws are paid.
An electrical subcontractor wins a $1.2M hospital renovation requiring $180,000 in materials before the first GC draw. A $200,000 construction line funds the material purchase; the first GC payment 45 days later repays it. The subcontractor takes on three similar jobs using the same facility.
A residential developer has a $3M construction loan with 30-day draw periods but faces cash shortfalls between draws. A $300,000 construction line bridges the 30-day gaps — funding subcontractor mobilizations that the construction loan draw repays when it arrives.
| Product | Approval Speed | Rate Range | Best For |
|---|---|---|---|
| Construction LOC | 3-7 days | 8%-15% APR | Multi-project, revolving, reusable |
| Construction Loan | 2-4 weeks | 8%-14% APR | Single project, scheduled draws, larger amounts |
| Business Term Loan | 1-5 days | 9%-35% APR | Lump sum, not project-specific |
| SBA 7(a) Working Capital | 30-60 days | 6%-10% APR | Lowest rate, heavy documentation |
| Invoice Factoring | 1-3 days | 1%-5%/30 days | Receivables only, sell not borrow |
| Business Credit Card | Instant | 15%-28% APR | Small purchases, high cost for large draws |
Join thousands of businesses who chose Crestmont Capital for fast, transparent business funding.
Apply Today →Crestmont Capital understands the unique cash flow dynamics of construction businesses — front-loaded costs, lumpy payment cycles, simultaneous project management, and rapid capital deployment needs.
Related: construction loans for specific projects, construction invoice factoring, and bridge loans for development gaps.
A construction loan funds a single specific project through scheduled milestone draws and terminates at project completion. A construction line of credit is a revolving facility you draw from and repay repeatedly across multiple projects, maintaining continuous availability without separate loan applications per job.
Yes. Subcontractors, specialty contractors, and GCs all qualify. Key requirements are an active contractor license, 2+ years in business, consistent revenue, and a track record of project completion.
Varies by lender. Some require draw-level documentation tied to specific projects. Others operate as general business lines. Documented facilities typically offer higher limits and lower rates.
Draws are repaid from project payment receipts — owner payments, GC progress payments, or construction loan disbursements. The revolving structure means you repay as payments arrive and redraw as the next phase requires capital.
Most lenders provide reasonable flexibility for documented project delays. Unlike installment loan payments, revolving line draws are typically repayable when project payments arrive. Communicate early about delays.
Yes. Construction lines typically fund any legitimate project cost: materials, subcontractor payments, equipment rentals, labor, and general project overhead.
Fast decisions. Competitive terms. Dedicated funding advisors. Apply now with Crestmont Capital.
Get Funded Now →Disclaimer: The information provided on this page is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.
